Ilić: Next cabinet to decide on highway

A meeting was held today at the government HQ with the Horgos-Pozega concessionaires and Deutsche Bank representatives. The bank was to provide PORR and Alpine, who won the tender to construct the highway planned to run from the northern to central parts of Serbia, with financial guarantees. Ilic: Next cabinet to decide on highway A day after a stormy cabinet session that decided not to allow the concessionaires to self-finance the start of construction works, scheduled for April 2, as Deutsche Bank announced they were unable to provide guarantees within the agreed time frame, Infrastructure Minister Velimir Ilic told B92 that today's meeting has decided to postpone any decisions on the fate of the concession contract itself until a new government takes over in Serbia. Parliamentary elections are scheduled for May 11. Earlier, ministers from the DS and G17 Plus asked Prime Minister Vojislav Kostunica to schedule a new cabinet meeting where they will suggest that the concessionaires be given 90 additional days to complete the financial construction of the project. "We agreed to try and extend the contract, to have a moratorium until the next government, for the next government to decide whether the concessionaires will be introduced into the project, after they bring guarantees that the money for this year and the bank guarantees have been secured, that the bank will cover the deal and give all the necessary guarantees for the whole investment. That is the period they need to complete this documentation – the 90 days mentioned would not mean a lot to them," Ilic said. "They would not be able to work, the season would go by, Deutsche Bank could not complete the guarantees for the whole investment in three months. I think we need a quiet period for the contract, and for work to continue with the next government," the minister, who is also the leader of New Serbia, NS, said. Earlier Friday, Economy Minister Mladjan Dinkic said he would ask for the deadline for the Horgos-Pozega to be extended by 3 months. He said that his ministry would ask the prime minister to arrange a government conference call to consider a proposal to extend the deadline for the concessionaire by three months in order to settle the matter of financing, and start work on the Horgos-Pozega highway. “I hope the prime minister will grasp that this is an important project, and that we should give the concessionaire this extended deadline, under the terms of the contract signed a year ago,“ Dinkic said today in Borca. He said that the Economy and Regional Development Ministry wanted the road built as it was of strategic importance to Serbia. At yesterday’s cabinet meeting, the government rejected the Infrastructure Ministry’s proposal to begin construction. Should an agreement be reached to hold a conference call, it would have to be held on March 31, as that is when the current financing deadline expires. Velimir Ilic (FoNet, archive) Decision to halt highway construction "senseless" The PM’s adviser has called the decision to halt work on the Horgos-Pozega highway “senseless and destructive.” Branislav Ristivojevic said that this decision would be overturned if a “state-building government” was formed. “The new state-building government that will be formed after May 11 has to overturn today’s decision to halt construction. We must immediately send the concessionaires a clear message of encouragement that the new government will take a decision to begin construction,” said Ristivojevic in a statement to Beta. According to the adviser, it would be a disastrous mistake to call a tender, as it would mean losing two or three years before the highway actually started to be built. “That’s why we’re sending the concessionaires a message—provided a state-building government is formed after the elections, this senseless and destructive decision will be overturned, and the new government will make sure that construction of the highway can begin immediately,“ he promised. At yesterday’s cabinet meeting, the government voted to reject Infrastructure Minister Velimir Ilic’s proposal for construction work to begin on the Horgos-Pozega highway.

Ilić: Next cabinet to decide on highway

A day after a stormy cabinet session that decided not to allow the concessionaires to self-finance the start of construction works, scheduled for April 2, as Deutsche Bank announced they were unable to provide guarantees within the agreed time frame, Infrastructure Minister Velimir Ilić told B92 that today's meeting has decided to postpone any decisions on the fate of the concession contract itself until a new government takes over in Serbia.

Parliamentary elections are scheduled for May 11.

Earlier, ministers from the DS and G17 Plus asked Prime Minister Vojislav Koštunica to schedule a new cabinet meeting where they will suggest that the concessionaires be given 90 additional days to complete the financial construction of the project.

"We agreed to try and extend the contract, to have a moratorium until the next government, for the next government to decide whether the concessionaires will be introduced into the project, after they bring guarantees that the money for this year and the bank guarantees have been secured, that the bank will cover the deal and give all the necessary guarantees for the whole investment. That is the period they need to complete this documentation – the 90 days mentioned would not mean a lot to them," Ilić said.

"They would not be able to work, the season would go by, Deutsche Bank could not complete the guarantees for the whole investment in three months. I think we need a quiet period for the contract, and for work to continue with the next government," the minister, who is also the leader of New Serbia, NS, said.

Earlier Friday, Economy Minister Mlađan Dinkić said he would ask for the deadline for the Horgoš-Požega to be extended by 3 months.

He said that his ministry would ask the prime minister to arrange a government conference call to consider a proposal to extend the deadline for the concessionaire by three months in order to settle the matter of financing, and start work on the Horgoš-Požega highway.

“I hope the prime minister will grasp that this is an important project, and that we should give the concessionaire this extended deadline, under the terms of the contract signed a year ago,“ Dinkić said today in Borča.

He said that the Economy and Regional Development Ministry wanted the road built as it was of strategic importance to Serbia.

At yesterday’s cabinet meeting, the government rejected the Infrastructure Ministry’s proposal to begin construction.

Should an agreement be reached to hold a conference call, it would have to be held on March 31, as that is when the current financing deadline expires.

Decision to halt highway construction "senseless"

The PM’s adviser has called the decision to halt work on the Horgoš-Požega highway “senseless and destructive.”

Branislav Ristivojević said that this decision would be overturned if a “state-building government” was formed.

“The new state-building government that will be formed after May 11 has to overturn today’s decision to halt construction. We must immediately send the concessionaires a clear message of encouragement that the new government will take a decision to begin construction,” said Ristivojević in a statement to Beta.

According to the adviser, it would be a disastrous mistake to call a tender, as it would mean losing two or three years before the highway actually started to be built.

“That’s why we’re sending the concessionaires a message—provided a state-building government is formed after the elections, this senseless and destructive decision will be overturned, and the new government will make sure that construction of the highway can begin immediately,“ he promised.

At yesterday’s cabinet meeting, the government voted to reject Infrastructure Minister Velimir Ilić’s proposal for construction work to begin on the Horgoš-Požega highway.